1. Field of the Invention
The present invention relates generally to financial transaction systems and methodologies, and in particular to a system and method for making payments based on a customer identification.
2. Description of the Related Art
A wide variety of payment methods are available to consumers of goods and services. In addition to currency, consumers are often able to use their credit in making purchases. A common system for making credit purchases involves the use of a credit card provided by a credit card issuer, such as a commercial bank or other financial institution. Non-credit transactions can be handled by debit cards, which utilize funds already deposited by the consumer for payment purposes.
Many types of payment methodologies are dependent upon customers having relationships with financial institutions such as banks, credit unions, etc. However, a substantial percentage of consumers do not use such conventional financial institutions. These consumers are often referred to as “unbanked” because they do not maintain accounts with such institutions. Unbanked consumers are often inconvenienced in making financial transactions. For example, without bank accounts, they experience difficulty and inconvenience in obtaining negotiable instruments, making purchases on credit, etc.
Recently there have been a number of new products which provide at least partial solutions to the problems of the unbanked and other consumers. For example, “prepay” cards allow consumers to pre-purchase various goods and services. An important example relates to the use of telecommunications services, which are available through prepaid “calling cards”. Many consumers prepay on a monthly basis for “dial tone” service. Prepaid cards can also be reloadable whereby additional value can be added by consumers for using their cards indefinitely.
Another prior art payment system involves the use of payment service providers making payments on behalf of consumers over the Internet global computer network or by negotiable instrument. Such a payment service is available from Western Union Commercial Services under its trademark QUICK COLLECT®. This product allows consumers to make payments to Western Union agents who the transfer funds either over the Internet global computer network or issue negotiable instruments to the payees on behalf of the customers/payors. Heretofore there has not been available a payment service method and system with the advantages and features of the present invention.